What is the process for forming a business entity?

Forming a business entity in Washington involves following specific steps. Initially, the business owners need to decide which form of business they want to use. The two most common types are a limited liability company (LLC) or a corporation. Each has different rules when it comes to taxation and other responsibilities. Once the business structure is determined, the owners will need to file paperwork with the Washington Secretary of State. This paperwork includes the Articles of Organization for an LLC or the Articles of Incorporation for a corporation. This paperwork must include the name of the business, its address, the names of the owners and other needed details. The owners will also need to file for any necessary licenses or permits depending on the type of business. This may include federal and state licenses and permits. Next, the owners should open a business bank account, register the business for taxes, and apply for an employer identification number (EIN) with the IRS. Lastly, the owners should consider having a written agreement that states how responsibilities and shares of profits and losses will be handled. This agreement should be made with a lawyer familiar with Washington business formation law. Forming a business can be an overwhelming process. Following these steps will help ensure the business is legally formed and all obligations are fulfilled.

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What is the process for forming a business entity?

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